M a r k e t N e w s

East Africa to Start Assembling Vehicles in 2018

Posted on : Monday, 14th December 2015

 Kiira Motors Corporation (KMC) yesterday launched its business strategy meant to establish capabilities for manufacturing vehicles in Uganda with production expected to start in 2018 through assembling.

 
According to Prof Tickodri-Togboa, the minister for Higher Education, Science and Technology, the idea to start making vehicles in the country started in 2007 when a group of Makerere University students and staff participated in Vehicle Design Summit in the United States, hosted by the Massachusetts Institute of Technology (MIT).
 
Prof Tickodri-Togboa said the project has evolved from being an extra-curricular activity under the auspices of the then faculty of technology Makerere University, to a mainstream research and innovation programme.
 
"This proof of concept project started in 2009 with funding from the Presidential Initiative for Science and Technology Innovation Programme," said Prof Tickodri-Togboa who mentored students and presided over the design and assembling of the KIIRA EV which was launched by President Museveni on November 24, 2011.
 
 
The 25-year blueprint launched by Prime Minister Ruhakana Rugunda at a ceremony in Kampala yesterday, seeks to help Uganda achieve Vision 2040 development goals.
 
He said government will supporting KMC until vehicles roll off the assembly line as the automotive industry is expected to open up many opportunities including business and partnership prospects, job creation, and enhancement of life.
 
Mr Paul Isaac Musasizi, the chief executive officer of KMC, said the company's product will include Sedans, pick-ups, crosser-overs, buses and trucks. A Sedan costs $25,000, a Crossover $28,000 and $32,000 for a Pick-up
 
"Production starts in 2018 with 305 vehicles and production is expected to be at full capacity of 60,000 vehicles per year by 2039," said Mr Musasizi. According to the an American- based consulting company, RLE International, that conducted the Kiira Motors Business case, the development of infrastructure is estimated to cost $36m (about Shs121b).
 
Mr Chris Kattalo, the Chief engineer of RLE International, noted that the project is a viable venture with 21 per cent internal rate of return and is expected to be profitable by 2023 posting about $2m.
 
It is also expected to create about 12,671 direct and indirect jobs during the implementation of five phases of the project, starting in 2016. As part of the recommendations, the consultants want KMC to enter the Uganda market and EAC as a Semi-Knockdown (SKDII) manufacture or contract assembly, where it can manufacture vehicles from partner Original Equipment Manufacturers (OEMs).
 
KMC is owned by Makerere University and Uganda Development Corporation. The plant will sit on 100 acres of land situated at the Uganda Industrial Investment Authority's Industrial Business Park in Kakira Town Council.

Source : allafrica.com
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